2. Quality Management Theory Terms, Concepts, & Principles

3. Acronyms Industry Acronyms: ISO – International Organization for Standardization ANSI – American National Standards Institute BNQP – Baldridge National Quality Program ASQ - American Society for Quality Quality Improvement Handbook specific terms: CQIA – Certified Quality Improvement Associate BoK – Body of Knowledge

4. Quality Management System Models The Baldridge National Quality Program Criteria for Performance Excellence Leadership –Senior Leaders guide and sustain your organization’s governance –Ethical, legal, and community responsibilities Strategic Planning –Development of strategic objectives and action plans –Deployment along with changes –Measure of Progress Customer and Market Focus –Determines requirements, needs, expectations, and preferences of customers and markets –Builds relationships with customer –Key factors that lead to customer acquisition, satisfaction, loyalty, and retention –Business expansion and sustainability Measurement, Analysis, and Knowledge Management –Selects, gathers, analyzes, manages, and improves its data, information and knowledge assets. –Reviews Performance

5. Quality Management System Models The Baldridge National Quality Program Criteria for Performance Excellence continued Human Resource Focus –How work systems and employee learning and motivation enables all employees to develop and utilize their full potential in alignment with you organization’s overall objectives, strategy, and action plans. –Organization’s efforts to build and maintain a work environment and employee support climate conductive to performance excellence and personal and organizational growth. Process Management –Key product, service, and organizational processes for creating customer and organizational value and key support processes. –Encompasses all key processes and all work units. Results –Performance and improvement in all key areas – products and service outcomes, customer satisfaction, financial and marketplace performance, human resource outcomes, operational performance, and leadership and social responsibility.

6. Quality Management System Models ISO 9000:2000 Family of Quality Management System Standards CONTINUOUS IMPROVEMENT Principles Customer Orientation –Understanding of needs and requirements of customers. Anticipating and exceeding customers’ expectations. Leadership –Strong leaders to establish common goals and direction –Encouraging active employee participation Involvement –Ensure that all employees at all levels can participate and use all their skills to make the organization successful Process Management –Management of activities as processes

7. Quality Management System Models ISO 9000:2000 Family of Quality Management System Standards continued System Management –Many individual processes are interrelated and must be within the overall system Continual Improvement –Key to long-term success and high performance –Processes must be reviewed and continuously improved to ensure that their organization stays competitive. Fact-Based Decisions –Decisions based on factual data are more likely to make the correct decisions Close Supplier Relationships –Partner and work close with their suppliers ensure that both the organization and suppliers are better able to achieve success

8. Quality Management System Models Similarities in the Baldridge and ISO 9000:2000 quality models Strong organizational leadership Focus on Customers Development and involvement of the organization’s people Gathering, analyzing, and using information to make decisions Process Management

9. Organizational Planning –Strategic planning – development of long-range strategies including: Basic goals and objectives, external customers’ needs and expectations, internal stakeholders’ needs and expectations, risks, regulatory requirements competitors’ capabilities, business systems needed –Tactical planning – translation of strategic objectives into actionable activities on a short-term basis to support the achievement of the strategic plans –Operational planning – development of day-to-day operating procedures addressing resources, materials and supplies, knowledge and skill sets required, processes and procedures, process improvement methods, etc.

10. Quality Planning Definition: The process of developing a master plan linked to organizational strategy, goals, and objectives that pertain to the quality of products or services to be delivered to customers –Key Requirements –Performance indicators –Commitment of resources to ensure that customer needs are met Quality planning is linked to the phases of organizational planning (Strategic, Tactical, and Operational) –Key quality requirements and performance indicators must be established in the design, development, and implementation of all products and services –Quality initiatives need to be associated to organization planning.

11. Employee Participation Motivate employees to develop and utilize their full potential in support of the organization’s overall goals and objectives. Empowerment – employees have the authority to make decisions and take actions in their work areas without prior approval, within established boundaries. Active member in process improvement Each employee must recognize that the outputs of their individual activities provide the inputs to the next person’s process Requirement of management to relinquish some of their authority and show by their actions that they expect full employee involvement and that they support actions taken by employees and decisions made by them to further the organization’s goals and objectives. Generally, the person that does the work everyday is in a better position to recommend improvements Lean Manufacturing perspective – eliminate waste Is employee participation encouraged at your place of employment?

12. Systems and Processes Process Management Approach is based on the ability of an organization to: Identify all its processes Recognize the inputs and outputs of each process Document the processes for implementation Identify the owners of the processes Implement the processes Measure the outcomes of the implementation Continually improve the efficiency and effectiveness of the processes

13. System and Processes SIPOC Analysis –Defining the linkage system with suppliers, inputs, process, outputs, customers –Helps with the understanding of how the process functions from a process management perspective.

14. Variation Special Cause Variation – Unexpected causes that cannot be avoided and are not normal to the process. 15% of the observed variations in a process. Generally, the individual using the process can detect and remove the variation from the process. Change in material System malfunction New employee Leak in a water line Common Cause Variation – Natural causes that cannot be avoided without redesigning the process. A problem built into the process. 85% of the observed variations in a process. Management is responsible for providing the necessary inputs to correct the majority of variation problems as the problem is built into the process. Effects of Temperature Computer Response Time – slow sensor Conveyor speed

15. Summary Acronyms Quality management system models including: –Baldridge National Quality Program Criteria for Performance Excellence –ISO9000:2000 Family of Quality Management Systems Standards Organizational Planning Employee Participation Systems & Processes including the SIPOC Analysis Variation: Common Cause and Special Cause